What the hell happened to $BRKK’s level of support? When looking at the technicals earlier in the week, we clearly saw an upward trend with BRK Inc closing out Tuesday at its support line and it seemed prime to bounce the following morning.
However, that didn’t happen…
Even Claytrader noticed the trend and indicated an upward move into Wednesday. Here’s a screenshot from his video.
So what happened here? Well, we have an idea… but it’s going to expose the darker side of the OTC.
Bear with us (no pun intended… okay maybe a little).
When the level of support for $BRKK did not hold we had to go back and rethink our analysis of the stock. We started digging through the forums for any sentiment, some piece of information that might have been overlooked.
Well we didn’t miss it per se, but we did find a new piece of evidence that will shine a light on Wednesday’s downward move.
We started retracing our steps, thinking we must have missed something in our due diligence over the weekend. Once we started backtracking we realized that we hadn’t missed anything, but a key piece of material was added to the report late Tuesday night that was overlooked (or not spoken of…) by the entire community.
We say that it was overlooked by EVERYONE because nobody was talking about it.
All we heard were crickets.
We couldn’t find a single shred of evidence to show where people were talking about this key filing that 100% explains why $BRKK experienced a drop in support.
Turns out that on Tuesday afternoon the default judgement, where BRKK was awarded $2.4MM dollars, was contested in the courts. Now it’s up to $BRKK to prove that they followed proper procedure, otherwise the ruling will be overturned and they will no longer have “won the case.”
This points to the more sinister side of the OTC, but the harsh reality is that it’s the wild, wild west out there. Once the default judgement was rendered, everyone immediately jumped into $BRKK in an attempt to be the first ones to the feeding.
We did the same thing, and still made a profit day trading. If you take a daily rinse and repeat approach then you probably loved the price action and made some money. However, if you were holding out for that momo, well… it never happened and now you’re stuck holding.
If you follow us then you either made money on the intraday volatility, or your stop-loss orders triggered and you walked away with minimal gains/loss depending on your entry and risk threshold.
The uncertainty in the OTC is palpable, and this is a prime example of why everyone should perform their own due diligence and NEVER take social media’s word for it. The key to being a successful micro-cap trader is managing your risk, and making sure that your gains are bigger than your losses.
Notice we didn’t say being sucessful means that you never lose. You have to learn how to lose small and win big or break even. As long as you avoid the “big loss” outcome, you’ll see success in the long run.
Also, we apologize if you perceive this post as “bashing” the stock. We only hope to be open and honest with our reporting, and this material evidence cannot be overlooked. Transparency is key to trust.
-Godspeed and happy trading!